When an asset is measured using the cost model, an impairment loss is:

A) set off against the balance of revenue.
B) recognised directly in equity.
C) accumulated in a separate 'accumulated impairment losses' account.
D) included in the balance of the accumulated depreciation and impairment losses account for that asset.

Cost Model

An accounting method that values an asset based on its historical cost less any accumulated depreciation or impairment losses.

Impairment Loss

A charge recognized when the carrying amount of an asset exceeds its recoverable amount, reflecting a permanent reduction in the asset's value.

Accumulated Depreciation

The total depreciation that has been recorded against an asset over its useful life, representing the reduction in value of the asset.